๐๏ธ Introduction to the Genius Act (US Stablecoin Innovation Act) / Full translation attached
**Genius Act (Guiding and Establishing National Innovation for US Stablecoins Act, S.1582)**is a bill introduced by the U.S. Senate that contains contents for innovation and sound market order of digital assets and stablecoins for payment. This bill is designed to secure the legitimacy of stablecoin-related companies and stability in the financial market, and to strengthen consumer protection and the soundness of the national financial system.
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๐ Summary of the main contents of the bill
1๏ธโฃ Stablecoin issuance and licensing system
- Only โlicensed payment stablecoin issuersโ with federal or state approval can issue stablecoins
- Unlicensed issuers are considered illegal and are subject to fines and criminal penalties
2๏ธโฃ Reserve requirements
- Issued stablecoins must be secured with reserves such as cash, government bonds, and deposits on a 1:1 basis.
- Strict regulations on over-collateralization and repurchase agreements (Repos)
3๏ธโฃ Supervision and Regulatory Framework
- The Federal Deposit Insurance Corporation (FDIC), the Comptroller of the Currency, and the Board of Governors of the Federal Reserve System, etc.
- Major federal agencies oversee issuers
- Establishment of a Stablecoin Certification Review Committee
4๏ธโฃ Consumer Protection
- Obligation of issuers and service providers to comply with lawful orders (e.g. seizure, freezing, or incineration orders)
5๏ธโฃ Foreign Issuers and Offshore Regulation
- Sales and offers of foreign-issued stablecoins in the United States are also regulated.
- Extraterritorial Effects Apply to Transactions with U.S. Residents
This is a Korean translation.